Question

When analyzing the change in operating income, the strategy component of price-recovery will increase when ________....

When analyzing the change in operating income, the strategy component of price-recovery will increase when ________.

A) capacity is reduced

B) market share is increased

C) selling prices are increased

D) more units are sold

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Answer #1
When analyzing the change in operating income, the strategy component of price-recovery will increase when selling prices are increased
The strategy component of price-recovery compares change in output price with the changes in input prices.
The strategy component of price-recovery will increase when the increase in selling price exceeds the increase in input prices.
Option C selling prices are increased is correct
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